I’ll start tomorrow – we promise ourselves every time we decide to take up something new but do not know where to begin, so we keep coming up with excuses for why now is not the right time. Saving is exactly the same – a large share of people do not save because they believe they earn too little and will start once they earn more.

However, knowing just a few basic saving methods is enough to make it possible to save even for those who believe they earn too little, because saving is always possible, even on a low salary.

Top 3 most effective ways to save money according to our assessment:

1. Set a savings goal - the most important thing for maintaining motivation to save is to set a goal for which you have decided to save. What that goal is does not matter; the most important thing is that it motivates you to pursue it.

2. Track your expenses – if you do not know where you spend your savings, you cannot manage your money, so in many cases you spend as much as you earn. It is therefore important to track your expenses and optimize them; read below to learn how to do this effectively.

3. The 50 – 30 – 20 rule – the easiest way to save is to learn how to allocate your money. The principle is simple – distribute your funds so that 50% of your salary goes to essential expenses, 30% to non-essential items, and 20% to savings.

Saving money may seem like a complicated, time-consuming process that requires willpower, but once you know effective methods for saving and managing money, it becomes not only easy and simple, but even enjoyable.

You do not need to apply all 15 saving methods; what matters is finding the ones that suit you. We are all different: some people like to spend more and treat themselves while shopping, while others spend less - it is very important to choose at least a few methods that are acceptable to you and will help you achieve your goal – manage your finances wisely and save money.

Each of the methods listed below will help you better understand the subtleties of saving, while you can decide for yourself which method will bring you the most benefit. It is important to remember that at first, while you do not yet have the habit of saving, setting money aside, and allocating your savings, it may be difficult to start and maintain motivation to save money, but having a goal and reminding yourself of it regularly will make it easier.

So how can you save money? Where should you start with a money-saving plan?

1. Set a goal for what you are saving for

This is one of the most important tips for saving effectively and avoiding living from paycheck to paycheck. Everyone has bad days when motivation disappears and you want to treat yourself, so at such moments, without a goal, it is very easy to slip and buy things we do not even need. Setting a savings goal helps prevent this by motivating you to manage your savings wisely. This goal can be very individual and different: some may save for a new car or a home loan, perhaps for a longer trip to an exotic country; for example, when travelling to New Zealand, a one-way flight alone can cost you 1000 EUR. Others may save for a child’s studies or a dignified retirement – any goals you truly want are suitable; the important thing is not to forget them and to keep reminding yourself of them.

2. Track your expenses

Once you have set a goal, it is very important to understand your current situation and where you spend the money you earn, because only by knowing this can you optimize your expenses and spend less on non-essential goods or services. It is recommended to track your expenses every month by dividing them into different categories; a few examples could be transport, food, utilities, etc. Once you know where you spend your money, you can think about how to reduce your expenses, perhaps by eating at cafés and restaurants less often and choosing to cook at home more frequently.

3. The 50 - 30 - 20 rule

Once you know where you spend your money, make sure your expenses follow the 50 30 20 rule. The question is: what do these numbers mean? You should allocate 50% of your salary to essential expenses that you must cover, such as food, housing, bills, and transport. Accordingly, allocate 30% of your salary to variable / non-essential expenses that you could live without but that provide comfort and allow you to treat yourself – various events, entertainment, clothing, and footwear. Allocate the remaining 20% of your salary to saving and investing. This accumulated money will be there when you need it most; in other words, you are saving for a rainy day. This rule allows you to distribute your salary according to your most important needs, but it should be used wisely – if you earn less, you may not be able to allocate 30% of your salary to non-essential expenses and will instead devote a larger share to essential needs, while if you earn more, you can allocate a larger portion of your salary to savings. A significant share of people who use this rule also set aside part of their money for investing, so everyone can adapt the rule to their own situation and manage their savings effectively.

4. Avoid impulse purchases – plan your purchases in advance

If you are used to spending more, it may be difficult to follow the rule described above, but the easiest way to reduce your expenses is to avoid impulse purchases. A shopping list can help with this, and we recommend making one every time before going to the supermarket; this preparation will help you avoid buying unplanned products. Also, do not go to the store hungry, because when we are hungry it feels as though we want everything, and we buy snacks that not only fail to fill us up but also make a noticeable dent in our wallet.

5. The 24-hour rule

This rule is intended for larger purchases that we often do not really need but strongly want at that particular moment. These purchases may include clothing, leisure equipment, and other goods whose perceived need is created by advertisements we see online. The rule recommends waiting 24 hours before buying an item that costs more than 100 EUR. If, after a day, you still need the item and still want to buy it, then you really do need it and can purchase it without feeling guilty. This rule helps you assess whether the item you want is actually necessary.

6. Compare prices

Different supermarkets offer their customers different promotions and prices, so before shopping we recommend comparing prices and assessing which store offers the same goods at a more affordable price. If you live near several stores, you can also buy the products you need from different supermarkets depending on where the biggest discounts and lowest prices are offered.

7. Give up expensive, harmful habits

We do not spend a lot only when shopping; we may also have very expensive habits, and giving them up can be one answer to the question of how to save money. Some of the most expensive habits, which harm not only your health but also your wallet, are smoking and alcohol consumption, as people with these habits can spend as much as several hundred euros per month on them.

8. Cancel subscriptions you do not use

Do you really use all the subscriptions you have purchased? These may include news subscriptions, television, a gym membership, etc. Make sure you actually use these subscriptions, and if you do not – cancel them, because this can help you save tens of euros.

9. Avoid consumer loans

Once you give up unnecessary expenses, you will not need to take out consumer loans either. In the long term, these loans not only do not help you save, but also cost you extra. If you already have a consumer loan, try to repay it as quickly as possible, because the high interest you pay on it eats into your savings.

10. Reduce the bills you pay

Review your bills and the amounts you pay – perhaps it would be worthwhile to invest in renovating your home so that you pay less for utilities in winter. You can also reduce your water bill by choosing a shower instead of a bath, and replace the light bulbs in your home with LED bulbs; this will help you save on electricity costs, which, as we have seen, can be very high.

11. Give up additional services – do it yourself

Consider which services you use; perhaps you could do some of them yourself? You can learn to change your own oil, paint the walls of your apartment, do your own nails, and much more, which will help you reduce expenses and save more.

12. Earn extra money – sell things you no longer need

Saving is possible not only by reducing your expenses but also by earning more or generating additional income, so look through your belongings and sell the things you no longer use – this will allow you to earn extra money.

13. Earn money for keeping your savings

Do not keep your money in a regular bank account; instead, keep spare funds in a deposit and earn additional interest for keeping your money there. This way of holding money is safe and low-risk because all deposits in Lithuania up to 100,000 EUR are insured. Interest rates vary, but you can expect to earn even 4% interest on money kept in a deposit.

14. Rent out an unused room or space

Perhaps you have a room in your apartment or house that you do not use? Rent it out on a long-term or short-term basis; this will allow you to earn additional income from a space you are not using anyway. By putting an unused room to work in this way, you can earn as much as several hundred euros per month.

15. Invest your spare funds

If you do not want to work actively but want to earn more, choose investing, which can help you grow your savings passively. One way to invest is through real estate loans, where you lend your savings to real estate developers who develop real estate projects. In this way, it is possible to earn more than 10% annual interest on average per year. You can find out how much you could earn over a year using the free investment calculator.

16. Plan your weekly menu in advance

Food makes up a significant share of everyday expenses, so planning a weekly menu can help you spend less money and avoid food waste. Before going shopping, it is recommended to check which products you already have at home and think about what you will cook over the next few days. Then, based on this, make a specific shopping list. This way, you will buy unnecessary products less often and throw away less food.

17. Set aside savings as soon as you receive income

Saving is much easier when the amount intended for savings is set aside not at the end of the month (from whatever is left) but as soon as you receive your salary. You can set up an automatic recurring transfer to a separate savings account so that the chosen amount is transferred every month without any additional effort. In this way, savings become a regular part of your expenses rather than whatever remains after all purchases. You can start with a small amount that does not significantly affect your everyday budget.

18. Set a weekly spending limit

Controlling a monthly budget can be difficult, so it is recommended to divide it into smaller parts and decide how much money you can spend per week. A separate limit can be applied to takeaway food, entertainment, coffee in town, or other non-essential expenses. By seeing how much money you have left until the end of the week, it is easier to decide whether a particular purchase is really necessary. Any unused amount can be transferred to savings or carried over to the following week.

19. Repair items first instead of replacing them with new ones

When a household appliance, item of clothing, or other frequently used item breaks, you do not necessarily need to buy a new one straight away. First assess whether it can be repaired inexpensively, refreshed, or adapted for another purpose. For example, torn clothing can be sewn, furniture can be repainted, and a minor household appliance fault can be repaired by a professional. This habit not only helps you save money but also allows you to use the things you already own for longer and develop your creativity. After all, an old wooden ladder can be turned into a shelf, jars into containers for small items, and torn T-shirts into cleaning cloths. Sometimes all it takes is a little creativity for an unwanted item to become a practical detail in your home.

20. Buy second-hand items

Not everything has to be bought new, especially if you use it rarely or only for a short time. Furniture, sports equipment, books, electronics, and many other goods can be found in classified ads, specialized second-hand platforms, Facebook groups, etc. They usually cost significantly less there. Of course, before buying, remember to assess the condition of the item and compare its price with what you would pay for a brand-new alternative.

How to start saving money?

To start saving, you do not need to immediately set aside a large share of your income or severely restrict your everyday expenses. It is much more important to create a system that you can follow for as long as possible. Here are specific steps that will make it much easier to start saving money:

1. Calculate how much money you have left each month. Add up all your income and subtract essential expenses such as housing, food, transport, and existing financial obligations. This will help you see how much you can realistically allocate to savings without compromising your everyday needs.

2. Choose a specific amount to save. Decide how much money you will set aside each month. Choose an amount that is realistic even during more financially difficult periods. If you can initially allocate only a small share of your income, do not worry – it is much more important to learn to set money aside regularly and build a saving habit.

3. Keep your savings in a separate account. It is better to separate the money intended for saving from the funds used for everyday expenses. Savings kept in a separate account are less tempting to spend.

4. Set up an automatic transfer. The chosen amount can be transferred automatically to your savings account on the day your salary is received. This way, you take care of your savings first.

5. Build an emergency fund. Before saving for larger purchases, first build a financial reserve for unexpected expenses, such as car repairs, health problems, or a temporary reduction in income.

6. Review your plan regularly. Once a month, check whether you managed to set aside the planned amount and what made it difficult to follow the plan. If your income or expenses change, you can adjust the amount you save, but it is important not to give up the saving habit completely.

How to learn to save money?

Being thrifty is not a one-time decision – it is a habit that can be developed gradually by improving your financial knowledge and putting what you learn into practice. Here are a few tips on how to learn to save money:

Take financial literacy courses. Start with training on personal budgeting, building savings, loans, interest, and the basics of investing. If you do not want to pay for courses, a great deal of useful information can also be found in the financial literacy section of the Bank of Lithuania website.
Read personal finance books. One of the most popular and highly rated choices among readers is Morgan Housel’s book “The Psychology of Money”. It explains how people’s behavior, emotions, and habits influence financial decisions.
Learn to create a real, not theoretical, budget. Track your income and expenses for a few months and then create a budget based on real data. Practice will help you see which expenses recur, in which areas you most often exceed the planned amount, and what share of your income you can realistically set aside.
Try one new method every month. One month you can apply a weekly spending limit, the next an automatic savings transfer, and another month the 24-hour rule for non-essential purchases. This will help you find out which saving tools suit your lifestyle best.
Learn to evaluate information critically. The internet is full of advice promising quick profits or extremely easy ways to save, but not all of it is reliable. It is important to verify information using official sources, compare several opinions, etc.

How to save money for children?

Children learn best through simple, everyday examples. It is important not only to encourage them to set aside part of their money, but also to help them understand the difference between wants and needs, how to plan expenses, and why it is worth thinking again before buying something. Here are a few tips on how to help children save money:

Encourage them to set aside part of their pocket money. Agree that whenever the child receives pocket money, they will always put a certain share of it into savings. At first, the most important thing is to build a regular habit rather than to save large amounts.
Help them choose a specific savings goal. It may be easier for a child to give up small purchases when they know exactly what they are saving for, such as a bicycle or a trip.
Use separate money boxes for different goals. One money box can be for a desired purchase, another for long-term savings, and a third for everyday expenses.
Teach them to compare prices. Before buying a desired item, it is recommended to check together how much it costs in different stores and whether there is a cheaper alternative. This helps the child understand that the first option they come across is not necessarily the best one.
Use a waiting rule. If a child suddenly wants a new item, suggest waiting at least a few days. After some time has passed, you can discuss again whether they still want the purchase and whether it is worth spending their savings on it.
Let them learn from small mistakes. If a child spends all their money on an unnecessary item, you should not immediately compensate for the amount lost. A small financial mistake experienced in a safe environment can help them better understand the consequences of poorly considered decisions.
Set an example through your own behavior. Children adopt habits more easily when they see how their parents plan purchases, compare prices, and set money aside for the future.

Where is the best place to save your money?

The best place for savings depends on what the money is being saved for, when you may need it, and how much risk you are prepared to take. For example, for a short-term reserve, the most important factors are safety and the ability to access the money quickly. For a longer period, you can choose instruments that offer the possibility of earning interest or an investment return. In the table below, we compare several different options to help you decide more easily where it is best to save your money:

Where to keep your money?	Main advantages	What is important to consider?	Who is it best suited for?
Money box or cash at home	Money is always easily accessible and there is no need to open additional accounts	Cash does not earn interest, inflation reduces its value over time, and there is also a risk of theft	Small amounts, short-term goals, a child’s savings
Separate bank account	Savings are separated from money intended for everyday purchases, making them easier to control	A standard account usually does not pay interest	An emergency fund and money that may be needed unexpectedly
Savings account	Interest may be paid on the money held, while the funds remain relatively easy to access	Interest rates are usually not high	Those who want to save safely while retaining the ability to access their money at any time
Fixed-term deposit	The interest rate and deposit term are known in advance, and deposits are usually insured	The money is held for a set period, so withdrawing it earlier may result in losing some or all of the interest	Those with savings they will not need for several months or longer
Investment instruments	Investment funds, ETFs, bonds, or money market funds can help increase the value of savings and generate a higher return than keeping money in a standard account	The value of investments may fluctuate, returns are not guaranteed, and the selected instruments differ in risk, term, and the ability to access funds quickly	Long-term goals and people who are prepared to accept a certain level of risk

How long should you save money for?

People most often save for anywhere from a few months to several years, but the specific period depends on the chosen goal, the amount needed, the income received, and the ability to set aside part of your money regularly. A few months may be enough for short-term needs, while saving for a home, children’s future, or retirement usually takes much longer. In the table below, we provide several examples of how long you may need to save money for different goals:

Savings goal	Recommended period
Emergency fund	6–24 months
Holiday/short trip	3–12 months
Household appliance or electronic device	2–12 months
Car	1–5 years
Home down payment	3–10 years
Home renovation	1–5 years
Child’s studies	5–18 years
Retirement	10–40 years

What should you do if you cannot follow your savings plan straight away?

We learn from mistakes, so if you do not succeed straight away – do not be discouraged. Analyze where things went wrong, remember the goal for which you started saving, and try again. Most importantly, do not repeat the same mistake and do not give up. If you find it difficult to follow a savings plan alone, involve your partner in the process as well. It will be easier to follow saving principles together because you can support one another, restore motivation, and remind each other of the goal behind what you are doing. If finances are an uncomfortable topic in your relationship and you do not know how to persuade your partner to start saving, conversation cards about finances may be useful, as they can turn the discussion into something like a game.

In short – saving is fairly easy once you know the basic saving rules, so we hope these tips will help you achieve your financial goals and manage the salary you receive wisely. How we handle our finances depends only on us, and it is never too early or too late to learn about saving – with the help of parents, this can be done even while attending kindergarten and after retirement. The most important thing is to have a goal for why we are doing it.